What is formula for calculation of this sum? Virtual University

[Xpert]

Question No: 46

An investor buys 5 options on shares of at a price of Rs 50 per share. Each option consists
of 100 shares and premium paid is Rs. 2 per share. What would be the total option cost for
investor if the share price is Rs. 55 at the expiry of option?

► Rs. 1,000

► Rs. 1,500

► Rs. 2,500

► Rs. 25,000

( Marks: 1 )

Question No: 47

An investor buys 5 options on shares at a price of Rs 50 per share. Each option consists of
100 shares and premium paid is Rs. 2 per share. What would be the net gain for investor if
the share price is Rs. 55 at the expiry of option?

► Rs. 1,500

► Rs. 2,500

► Rs. 1,000

► Rs. 25,000

[Xpert]

An investor buys 5 options on shares of at a price of Rs 50 per share. Each option consists
of 100 shares and premium paid is Rs. 2 per share. What would be the total option cost for
investor if the share price is Rs. 55 at the expiry of option?

► Rs. 1,000

► Rs. 1,500

► Rs. 2,500

5 option each option have 100 share
total share is 5 *100 =500
total cost of option is 50*500=25,000

[Xpert]

is ka correct ans 2nd hy ya 3rd help me
Suppose you need the present value interest factor for 12 percent compounded quarterly for 10 years. If all you have is a PVIF table, you would use the ________ period row and the ________ percent rate column.

40, 12
20.12
40,3
20,6